FG introduces more incentives for coal exploration
The federal government now permit a 100 per cent repatriation of profits and complete foreign ownership of all mining concerns in the coal sector.
A report from the Ministry of Solid Minerals Development on ``Coal Exploration Opportunities in Nigeria'' said that government permits a 100 per cent foreign ownership of mining concerns and power generation plants as well.
The report which was given to the News Agency of Nigeria (NAN) in Abuja said that some basic infrastructure like roads, deep ocean terminals, rails and jetties had been built in some parts of the country to support coal exploration.
It further noted that the Export Processing and Free Trade Zones were operational and the national electric power grid was already being upgraded to further facilitate exploration of the coal deposits.
The six-page report stated that the Anambra basin which encompassed seven coal mining districts including the three that had been explored to a greater degree, Kogi, Benue and Enugu, had the largest deposit of coal.
The report said that the Anambra basin also had the most economically viable coal deposit, stretching 1.5 million hectares.
According to the report, the Kogi coal district, which is part of the Anambra basin is estimated to have a demonstrated coal resource of 223 million tones averaging 3. 6 metres thick and covering an area of 225, 000 hectares.
The Benue coal district (Orukpa - Ezimo), which covers about 175, 000 hectares with 3.1 metre thickness, has an estimated demonstrated coal resource of 124 million tones.
The third district under the Anambra basin, Enugu, covers an area of 270, 000 hectares of the coal basin and has a demonstrated coal resource of 49 million tones averaging 2.2 metres thick.
The report put the entire coal resource for the areas studied in the country at 1, 487 million tones while the coal seam thickness averages 2.2 metres from Enugu North to Ogboyaga.
It added that there were still large domestic and foreign market for coal while the government was prepared to support further exploration of the mineral.